Designed to accelerate Israel's industrial capability, the Law for the Encouragement of Capital Investments offers industrial companies conditional grants as outlined herein.
Type of Support:
Grants for production equipment, facilities, and fixed assets, conditional upon their acquisition or construction in the framework of a program approved by the Investment Centers Administration
Applying companies must meet the following criteria:
Must be an industrial enterprise, registered in Israel
Must be located in designated National Priority Region (mostly in Israel's north and south. For a complete list in Hebrew, see here.
Must be internationally competitive (i.e. have export capability), excepting biotechnology and nanotechnology companies
Must not have simultaneously applied or been approved for an employment grant as detailed below (excepting enterprises employing disabled persons)
For structural grants: Must not have pending legal questions surrounding the structure
Service industries, the agricultural industry (including refrigeration facilities), the mineral and natural gas industries are not eligible for aid within this framework
Terms of Grant:
• Grants are accorded at 20% of the amount of investment in fixed assets, as outlined in the approved program.
• The applying company must finance 24% of the project with equity financing
Applications are reviewed thoroughly by the Investments Center Administration and 'approved enterprise' status is granted at the conclusion of a review procedure that includes submission of a detailed business plan, subject to various considerations.
Applications are reviewed and scored for a number of parameters that are periodically modified. They currently include:
• Geographic Location of the plant: 20%
• Employee wage costs: 10%
• Socio-economic rating of the plant location: 20%
• Company's financial stability and proven abilities: 10%
• Scope of investment in employee: 10%
• Expected productivity increase: 10%
• Technological innovation: 20%
• Companies that terminated previous approved programs: -5%